I’m a 40 year old business owner and need help. My wife and I currently own 3 business and we want to slow down and relax in 3 years.
1)A rental company that’s an s-corp that we hold 5/6 of the shares. The landlords (husband and wife) hold 1/6 of the shares. It has 36 duplexes (valued at $325,000 each) and 20 houses (valued at $300,000 to 450,000 each). One 4 unit strip mall (leased out to our companies). Company 2 dose all the maintenance to the units. Currently has .9 million in loans in the 3.9% interest rate range that we dump as much of the companies money in as possible. Brings in about $80,000 in rent a month.
2)A house flipping, custom wood work, and light remodel company that’s an s-corp that we hold 4/6 of the shares. I have 4 employees that split 2/6 shares. We currently have 12 houses in different stages of flipping. If they don’t sell with in 120 days company 1 normally buys them. Current loans are in around $300,000. This year it should make about 1.5 million before taxes a year.
3)A pottery business that’s a sole proprietorship that’s more of my wife’s hobby than anything. No employees or anything that might make $5,000 a year.
I spend 80% of my time in company working in company 2. My wife spends about 50% of her time in company 1 and plays in company 3 when she wants to. We have 2 kids 15 and 17 that help out with what ever is needed.
Untill about a week ago we never thought about anything that was more than a few years away. Were thinking in 3 years I want to turn business 2 into a custom wood working, cabinet shop with possibly two employees witch will be a huge income and stress loss. We would split the work in business 1 and she would do what every she wants with business 3.
This year it looks like business 1 will get 15,000 to 20,000 per 1/6 share bonus and business 2 will between $50,000 to 55,000per 1/6 share all depending on the annual share holders meetings next week.
Our current investments, income, and junk…
$19,500 in a collage fund for the kids
$60,000 in IRA with Mid to mild investments
$45,000 HSA
$2.8 million in stocks; GE, utility companies, ford, Exedy and a few others
Own our 5 bedroom “off grid” house with 10 acres of land
$50,000 in cash and CD’s
Credit ratings are 800 to 830
Yearly income is around $450,000 and around $275,000 twice a year in bonuses a year.
5 cars/trucks $20,000 in loans
So far our retirement plan consents of paying off our truck loans with our bonuses and investing the rest in something. Were planning to investing our bonuses for the next 3 years in something.
What should we invest this bonus (will be getting them next week) in this year and what changes should we make in our current investments? I don’t plan on social security being around when I’m at age to receive it at 88 or what ever it is.
1)A rental company that’s an s-corp that we hold 5/6 of the shares. The landlords (husband and wife) hold 1/6 of the shares. It has 36 duplexes (valued at $325,000 each) and 20 houses (valued at $300,000 to 450,000 each). One 4 unit strip mall (leased out to our companies). Company 2 dose all the maintenance to the units. Currently has .9 million in loans in the 3.9% interest rate range that we dump as much of the companies money in as possible. Brings in about $80,000 in rent a month.
2)A house flipping, custom wood work, and light remodel company that’s an s-corp that we hold 4/6 of the shares. I have 4 employees that split 2/6 shares. We currently have 12 houses in different stages of flipping. If they don’t sell with in 120 days company 1 normally buys them. Current loans are in around $300,000. This year it should make about 1.5 million before taxes a year.
3)A pottery business that’s a sole proprietorship that’s more of my wife’s hobby than anything. No employees or anything that might make $5,000 a year.
I spend 80% of my time in company working in company 2. My wife spends about 50% of her time in company 1 and plays in company 3 when she wants to. We have 2 kids 15 and 17 that help out with what ever is needed.
Untill about a week ago we never thought about anything that was more than a few years away. Were thinking in 3 years I want to turn business 2 into a custom wood working, cabinet shop with possibly two employees witch will be a huge income and stress loss. We would split the work in business 1 and she would do what every she wants with business 3.
This year it looks like business 1 will get 15,000 to 20,000 per 1/6 share bonus and business 2 will between $50,000 to 55,000per 1/6 share all depending on the annual share holders meetings next week.
Our current investments, income, and junk…
$19,500 in a collage fund for the kids
$60,000 in IRA with Mid to mild investments
$45,000 HSA
$2.8 million in stocks; GE, utility companies, ford, Exedy and a few others
Own our 5 bedroom “off grid” house with 10 acres of land
$50,000 in cash and CD’s
Credit ratings are 800 to 830
Yearly income is around $450,000 and around $275,000 twice a year in bonuses a year.
5 cars/trucks $20,000 in loans
So far our retirement plan consents of paying off our truck loans with our bonuses and investing the rest in something. Were planning to investing our bonuses for the next 3 years in something.
What should we invest this bonus (will be getting them next week) in this year and what changes should we make in our current investments? I don’t plan on social security being around when I’m at age to receive it at 88 or what ever it is.
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